But there is a limit to how much you can exclude from ordinary income.

The purchase price will be 160k and the homes renovated value is between 210-220k. (4bd 2.5ba on 5 acres inside city limits)My question is, should i do minimum repairs and rent the home out for around 1500mo (pay the morgage) or flip the home.

You need cash to handle emergencies (car accident, job loss, etc).

Besides my secular job I am a also the Pastor of the Truth Church in Edgerton, KS.I have a limited background in real estate investing but I have bought 3 single family homes in my life and one of those I had a renter for a couple years before selling for a profit.

Really, not just limited to basements, but any room or apartment that has another floor above.

Here is how I see this deal:Gross Rents: $6,666Operating Expenses: $3,333NOI: $3,333Mortgage Payment ($600,000, 30 yr, 7%): $3,991Monthly Cash Flow: $658 LOSS (OUCH!)

Im just not sure what the guidelines are for posting if it is limited to questions only.

Then it takes another seven years to make up the losses.

Does working with sellers in pre-foreclosure mean you have to be a loss mitigation expert?

In the lease, can you reserve the right to sue the tenant for any loss it seems that they have caused, like fire or other damage, something that goes past the amount of the security deposit?